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Tamim Bayoumi, a senior fellow at the Peterson Institute for International Economic, said the world has to get used to that China is moving towards "a slower but more stable growth rate," as the country is making the transition to "much more of a consumption-based economy" from the old growth model mainly based on investment into manufacturing and export industries.
Yi was asked about China's foreign reserves twice at a press conference on the sidelines of the fourth session of the 12th Chinese People's Political Consultative Conference (CPPCC) National Committee, of which he is a member.
INCREASED DEFICIT "PRUDENT, WISE"
The current Belt and Road initiative, which has its roots in the ancient Silk Road trade route, was born of the concepts of sharing and caring.
"We reaffirm our previous exchange rate commitments, including that we will refrain from competitive devaluations and we will not target our exchange rates for competitive purposes," the communique said, pledging to carefully calibrate macroeconomic policies to reduce uncertainty, minimize negative spillovers and promote transparency.
